Which of the following best describes lapping?
A)applying cash receipts to a different customer's account in an attempt to conceal previous thefts of funds
B)inflating bank balances by transferring money among different bank accounts
C)expensing an asset that has been stolen
D)creating a false transaction

Question

Quizplus · Accepted Answer

Lapping involves manipulating accounts receivable to conceal the embezzlement of funds. It typically involves applying cash receipts from one customer to cover a shortfall created by theft from another customer's payments, thereby delaying the detection of the theft.

Which of the Following Best Describes Lapping